Ellsworth woman files suit against insurance company

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Dawn McPherson, N4175 610th St., Ellsworth, filed suit against American Family Mutual Insurance Company, Madison.

According to the complaint, McPherson had a residential insurance policy with American Family, and on Aug. 15, 2011, her home and its contents were destroyed by fire.

She says she promptly notified the insurance company and provided proof-of-loss documents, but American Family has not paid the full policy limits and benefits due her.

McPherson says the insurance company paid some of her claims partially and “sporadically but not timely, efficiently and not administratively identified with sufficient specificity” to tell her which loss claims were paid, which are still being considered and which were denied.

The complaint also says American Family paid $152,390 to her mortgage holder without naming her as a payee.

She says, because of American Family’s actions, she has not been able to obtain replacement items and rebuild the home within a year of the fire.

McPherson is asking for 12 percent interest on all sums due her and is alleging the insurance company acted in bad faith by paying the money directly to the bank, ignoring her requests for money to begin rebuilding and cutting off payment for her living expenses.

She is making claim for financial losses, emotional distress, mental anguish, humiliation, anxiety and litigation costs, and is asking for a $510,000 judgment against American Family.

Tags: crime and courts, news, ellsworth, crime